Why the "financial system" is broken


#1


I just created the "free goodies" category:

Why "free goodies", though? I believe most good things in life must be for free, in one way or another. The current financial system model is broken and that's a big reason why basiux was made non profit. Truth is I don't know of a better system and it's still one of our best technologies ever invented, which people struggle a lot to comprehend as being a tech, but it's still broken nonetheless.

And probably writing a bit on teal practices also triggered me to write this topic.

How is money a technology?

Gotta love wikipeda:

Technology ("science of craft", from Greek τέχνη, techne, "art, skill, cunning of hand"; and -λογία, -logia[3]) is the collection of techniques, skills, methods and processes used in the production of goods or services or in the accomplishment of objectives, such as scientific investigation. Technology can be the knowledge of techniques, processes, etc. or it can be embedded in machines, computers, devices and factories, which can be operated by individuals without detailed knowledge of the workings of such things.

We often use it to mean "computers" or even, sometimes, "machines". But, in reality, technology is just a product of science. So, money is a technology. Why this matters? Because I post a lot about tech and if you read anything I write, this may click to you as a realization. Money is a technology. It's just a tool. Money, along with all our understanding of how society works around it, is not here to stay. Like any technology, it's here to be replaced by better tools.

As for "financial system", gotta hate wikipedia...



But still mostly love wikipedia! :slightly_smiling: Regardless of what it says (or doesn't say, since "financial system" is actually with "multiple issues" right now), what I meant by "financial system" is just how we currently use money. A better term might be "our current usage of money" but "financial system" just sound better.

For a little disclaimer, I'm no expert economist ±, all I know about it is the little I read ±, a lot about doing calculations (far from samething as math ±*, which I'm also far from an expert) and hearing freakonomics. PS: those marked with ± are all articles I haven't read, just scanned through and read tiny bits.

( A couple of spin off topics here )

Spin off topic to come: Yeah, usually it's what I do when I link to wikipedia, because I judge I've read enough of it to get a good grasp on how it works, but of course not for every topic. Except here, in the math case (only used ± there to call attention), like in most of wikipedia articles, the first paragraph was enough for me to get it and agree with it (unlike with the other 2 there). This, right here, should eventually spin off as a new topic "how to properly use google and wikipedia ±", because [the official one is too big and looks too unfriendly](https://en.wikipedia.org/wiki/Wikipedia:Researching_with_Wikipedia), plus it probably misses the main point.

Another spin off topic to come: Also, I'm now starting this new trend of using ± to mark "links I haven't fully read, but scanned over and agreed with" :stuck_out_tongue: This alone is probably a good reason to make a topic just to explain it to google. :smiley:

Back to the topic...

Why does it matter realizing money is a technology and an outdated one?

Bitcoin apocalypse

I'll probably (yet again) need to write a new topic on this alone... Too much time used for the current topic already for today. :frowning:

Bitcoins can bring us much smaller and faster transactions. About the same way credit cards created a few business that didn't exist, so will bitcoin when they become common place. One of the new business that may arise would be very crucial and change the financial system completely.

Today we move all around banks. Which created the terrible speculative market of stocks. Originally the financial system organically grew to get us, people, moving. Capitalism. It's a hard economic concept to grasp, even for who was born in a country which does teach it within their culture (unlike my birth country). I'm still struggling with it. The idea is, though, the very basic concept of trading. And reason why things like TimeRepublic are terrible ideas, trying to reinvent the wheel in a pseudo-scientific pattern. I may, of course, be terribly wrong about stocks, just like so many things... But the more I try to understand it, the more wrong it feels to me. Like quantum physics (I'm still with Einstein in that one, I agree "God doesn't play dices", despite some trend within reliable sources to say otherwise).

So, what's that new biz thing bitcoins can bring us? Smaller banks. Or maybe no banks. They won't be needed as we know them today. They could still be building bitcoin machines, printing paper money (to which we still need a better energy efficient solution to) and all that, but not saving our money for us, or generating interest - since they should have no capital anymore. This may, of course, never happen, given the huge bank power today. But every other huge institution have fallen in the past, or been reduced significantly. Before banks, there were churches. A very different world back then. Maybe we'll get something like science (or Ai) to become the new evil tyrannical system next...

In any case...

Yeah, that's basically what I mean with the financial system is broken. It's only logical, isn't it? :sparkles:

I sure forgot to mention or include a lot of concepts here (still trying to better learn how to compress data in my mind). One instance is I didn't even talked about basic income; or how Ai is going to disrupt everything, even if it never develops out of weak Ai. Or the burning man, a living experimental money-free community of 50k people for just 1 week. But if writing the previous topic chapter was already over my time budget, keep trying to think of things I forgot and compressing them in just won't happen now! :sweat:

It's also not like the topic wasn't already dense enough (hurray to double negatives!). :wink:


#2

I think you should just refrain from posting about things you have very little clue about. It's embarassing.

Not that I'm any better, but, I read the whole thing and learned nothing. You've exposed 0 reasons as to why the current system is broken, and pretends like you did. You don't seem to understand the main function of banks, nor how capitalism differs from barter or planned economies.

At least read up on the subject for 20 minutes before you make a post out of it. Please.

Shoutout to mises.org


#3

Very valuable hint. I'll sure try monitoring myself better. Thanks! :slightly_smiling:

I just tried reading it again, and tried improving it without changing too much, but it's confusing as hell indeed and not worth the shot.

Clearly the whole "blog whatever on my mind" idea was kinda broken. I hope the new buffering can work better, with categories, plus the "regurgitating" one, spoilers, which should work as an escape valve for moments like this, where I just need to write and still rather do it in public.